Carmignac Group has been granted a Renminbi Qualified Foreign Institutional Investor licence (RQFII).
This licence, issued by the China Securities Regulatory Commission (CSRC), gives access to A shares and local bonds denominated in renminbi (RMB), potentially providing new investment opportunities linked to the growth of the Chinese economy.
The asset manager plans to expand its investment universe to the Chinese domestic market where bond issuance amounts to $5,000 billion (€3,900 billion) and the market capitalisation of the equity market is $4,000 billion (€3,100 billion).
Carmignac, which has €50 billion of assets under management, will subsequently be allocated a specific investment quota.
Haiyan Li-Labbé, China analyst at Carmignac, says: “The reforms embarked upon by the Chinese government are a short-term hurdle but offer excellent long-term potential, which is where we want to be able to position ourselves effectively.”
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